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GM isn't liable for punitive damages in ignition switch cases

NEW YORK — A federal appeals court said General Motors is not liable for punitive damages over accidents that occurred after its 2009 bankruptcy and involved vehicles it produced earlier, including vehicles with faulty ignition switches. The 2nd U.S. Circuit Court of Appeals in Manhattan said on Tuesday that the automaker did not agree to contractually assume liability for punitive damages as part of its federally-backed Chapter 11 reorganization. GM filed for bankruptcy in June 2009, and its best assets were transferred to a new Detroit-based company with the same name. The other assets and many liabilities stayed with "Old GM," which is also known as Motors Liquidation Co. Tuesday's 3-0 decision may help GM reduce its ultimate exposure in nationwide litigation over defective ignition switches in several Chevrolet, Pontiac and Saturn models. It is also a defeat for drivers involved in post-bankruptcy accidents, including those who collided with older GM vehicles driven by others, as well as their law firms. The ignition switch defect could cause engine stalls and keep airbags from deploying, and has been linked to 124 deaths. A lawyer for the drivers and their law firms did not immediately respond to requests for comment. GM had no comment. Circuit Judge Dennis Jacobs said GM's agreement to acquire assets "free and clear" of most liabilities excused it from punitive damages claims for Old GM's conduct. He also noted that the judge who oversaw the bankruptcy concluded that the new company could not be liable for claims that the "deeply insolvent" Old GM would never have paid. The decision upheld a May 2018 ruling by U.S. District Judge Jesse Furman in Manhattan, who oversees the ignition switch litigation. Drivers have sought a variety of damages in that litigation, including for declining resale values. GM has recalled more than 2.6 million vehicles since 2014 over ignition switch problems. It has also paid more than $2.6 billion in related penalties and settlements, including $900 million to settle a U.S. Department of Justice criminal case. The case is In re: Motors Liquidation Co, 2nd U.S. Circuit Court of Appeals, No. 18-1940. Government/Legal Chevrolet Pontiac Saturn Safety gm ignition switch

Junkyard Gem: 1986 Pontiac Sunbird Sedan

The J-Body platform was a giant seller for GM, staying in production from the first 1981 Chevrolet Cavalier all the way through that final 2005 Pontiac Sunfire. Outside of North America, Opels and Daewoos and Isuzus and Holdens and Vauxhalls and even Toyotas flew the J flag, and better than ten million rolled out of showrooms during that quarter-century. In the United States, Chevrolet, Oldsmobile, Pontiac, Buick, and Cadillac each sold J-Bodies. Of those, the Pontiac Sunbird often had the sportiest image, more cavalier than even the Cavalier Z24. I've documented a discarded Sunbird Turbo in the past, and now here's a bread-and-butter Sunbird sedan from the same era. The Sunbird name began its life in 1976 on the Pontiac-badged version of the rear-wheel-drive Buick Skyhawk, itself based on the Chevy Vega. The first J-Body Pontiacs had J2000 badges, then 2000 badges, then 2000 Sunbird badges, until finally the pure non-2000 Sunbird appeared for the 1985 model year. I remain disappointed that the 2000 name didn't survive into our current century, because we could have had a 2000 Pontiac 2000, or just the "2000 2000" for short. The base engine in the '86 Sunbird was this SOHC 1.8-liter four of Brazilian origin, rated at 84 horsepower. Originally developed by Opel in the late 1970s, this engine family went into cars built all across the sprawling GM empire. 84 horsepower doesn't sound like much— and it wasn't much, even by 1986 standards— but at least the original buyer of this car had the smarts to get the five-speed manual transmission. This car weighed just 2,336 pounds, a good 500 pounds lighter than the current Chevy Sonic, so performance with the manual transmission was tolerable. The '86 Sunbird's interior was much nicer than those in its Cavalier siblings, though nowhere near the Cadillac Cimarron's reading on the Plush-O-Meter. An AM/FM/cassette stereo with auto reverse was serious audio hardware in a cheap car during the middle 1980s, when even a scratchy factory AM-only radio cost the equivalent of several hundred 2020 bucks. The price tag of this car started at $7,495, or about $17,500 in 2020 dollars. The cheapest possible Cavalier sedan went for $6,888 in 1986, but a zero-option base '86 Cavalier would make you think you'd been transported to the Soviet Union every time you slunk into its harsh confines. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

General Motors Recalls Nearly 780,000 Cars To Fix Deadly Problem

General Motors is recalling nearly 780,000 compact cars in North America because the engines can shut down unexpectedly and cause crashes. The company says six people have been killed in crashes related to the problem. The recall affects Chevrolet Cobalts and Pontiac G5s from the 2005 through 2007 model years. U.S. safety regulators say the weight of the key ring and rough roads can move the ignition switch out of the run position, cutting the engine and electricity. If that happens, air bags may not work. GM says there have been 22 crashes from the problem. All happened at high speeds. Dealers will replace the ignition switch for free. GM says owners should remove nonessential items from key rings until the problem is fixed. Related Gallery Chevy Impala Earns Highest Accolades From Consumer Reports Recalls Chevrolet GM Pontiac Cobalt